Zip Co raising $25m equity, restructures $330m con notes

Listed buy-now-pay-later business Zip Co had Goldman Sachs stitching up a $25 million equity raising on Thursday morning, amid a broader restructure of $330 million worth of convertible notes.

Zip co-founder and global chief operating officer Peter Gray. Rhett Wyman.

Sources said Zip would raise $25 million at 47¢ a share, or a 6.9 per cent discount to the last close. This would pay out some convertible noteholders.

Zip would also restructure the remaining of its convertible notes at 47.5¢ on the dollar. This means instead of the Zip wits convertible note holders $330 million, it would now owe them $137.8 million.

Its shares last traded at 50.5¢ a pop after losing 21 per cent in the past 12 months. It has a $388 million market capitalisation.

The capital markets trip comes as Zip Co plans to close its Middle East operations and divest its European business, Twisto, alongside its Payflex business in South Africa. It would retain its core consumer lending operations in Australia and the US.